Finding 1182462 (2025-002)

Finding 2025-002: Noncompliance with OMB Compliance Supplement; Period of Performance (H) for Assistance Listing Number (ALN) 93.958 Block Grants for Community Mental Health Services Criteria: The Code of Federal Regulations (CFR) Sections 200.308, 200.309, and 200.403(h) states “a non-Federal entity may charge only allowable costs incurred during the approved budget period of a federal award's period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entities.” Costs incurred before or after the period of performance are unallowable unless explicitly approved. Condition: During our testing of expenditures charged to ALN 93.958, we identified 2 transactions out of a total sample of 15 totaling $192 that were incurred outside of the award’s period of performance. Cause and Effect: The Center did not have the controls in place to perform a review of service dates to ensure they fell within the authorized period of performance. The effect of this condition increases the possibility that expenditures are unallowable per the grant being charged to the Federal program. Repeat Finding: No Questioned Costs: $192 Recommendation: Policies and procedures should be in place to ensure accurate reporting. A formal review process should be established to ensure compliance. Views of Responsible Officials: Management agrees with this finding and response is included in the Corrective Action Plan.